Japanese Economy in Recession

TOKYO, Japan¯'Japanese Economy in Recession' lauds a recent report by the Associated Press. Today (Monday) the government announced that the country's economy plunged back into recession at the end of last year. Between October and December Japan's Gross domestic product fell 1.4% compared to the July-September period. The drop follows a 1% fall in the third quarter (July-September). According to the Economic Planning Agency (EPA), a GDP drop in two consecutive quarters constitutes a recession. According to the AP, Japanese officials are not overly concerned about the numbers, citing an overall improving landscape for the world's second-largest economy. "Everyone knows consumption in the January-March will be good,'' Finance Minister Kiichi Miyazawa noted. ``The fact is the economy is clearly improving.'' The October-December period saw domestic consumption fall 1.6%. The Asia financial crisis, which began in Thailand in 1997, pushed Japan, the world's second largest economy, into its worst recession since World War II. It later began to recover, but consumer spending is still low, as many Japanese remain nervous about the fate economy and the security of their jobs. (JW)